Oceania in the Foreign Policy of China

Abstract

To study the economic and political activity of PRC in Oceania (among the developing states of the Pacific region) seems to be a very urgent task in connection with the growing global rivalry between the US and China and, in particular, in the Indo-Pacific. By actively developing trade and economic ties, providing preferential loans, and engaging in its global Belt and Road Initiative, China is gaining leverage to strengthen its political influence. Thus, gradually more and more countries in Oceania break off official relations with Taiwan in favor of China and support it on painful international issues. The countries of Oceania need financial assistance to modernize their economies, develop infrastructure, and implement social programs. Unlike Western countries, China's financial assistance is more accessible and does not involve complicated approval procedures and financial reporting, and it makes China an attractive source of cash receipts. This is also associated with the growth of the debt of a number of Pacific states to the PRC, which in some cases is of a very critical nature. Chinese expansion is quite obvious and is already causing concern and criticism from the traditional patrons of Oceania - Australia, the USA, and France. For keeping the political control over the region, the latter are forced to respond to the challenge from China through the implementation of new joint economic and humanitarian programs, military support, and criticism of Chinese initiatives in the region, expected by the local political elites. The battle for influence in Oceania is becoming increasingly important in China's strategy and Beijing has a chance to become a major player in this region, including conversion of economic influence into military presence.